EUR/USD Daily Forecast – 22 January

Focus of yesterday's session was on ECB rate decision and the following press conference. The Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.30% respectively. European Central bank boss Mario Draghi warned that downside risks were increasing again and more stimulus might be necessary, causing a sharp move in equity and currency markets."It will therefore be necessary to review and possibly reconsider our monetary policy stance at our next meeting in March," Draghi told at the following news conference, making it clear that things had changed since December as oil prices fell sharply.

EUR/USD Daily Forecast – 22 January

Euro fell after yesterday's dovish comments by ECB President Mario Draghi, even breaking below 1.08 handle at one point, but managed to quickly rebound and finish the day well above this area. This indicates that there is plenty of buyers for this pair all the way to 1.07 handle and this is why we do not expect an easy way down. Read more...

Draghi warns more stimulus may be needed

EUR/USD Daily Forecast – 21 January

There were no major data releases from Eurozone on Wednesday, with traders being cautious ahead of tomorrow's ECB Press Conference. German PPI missed forecast but markets paid little attention. The euro moved higher against the dollar a day before the European Central Bank meets to review the struggling European economy. "The ECB isn't expected to make any changes this time," said Joe Manimbo, a market analyst at Western Union Business Solutions.